Overview
- S&P 500 and Nasdaq 100 futures fell about 1% to 1.6% and the VIX climbed toward a two-week high as the tech trade lost steam.
- Palantir slid roughly 6%–9% in premarket trading despite beating estimates and raising guidance, reinforcing worries about frothy AI valuations.
- Goldman Sachs and Morgan Stanley chiefs cautioned that equities could see a pullback of more than 10% over the next one to two years.
- Big AI headlines that boosted markets Monday—Amazon’s reported $38 billion AWS deal with OpenAI and Nvidia’s UAE export licenses—failed to sustain gains as market breadth stayed weak.
- An ongoing U.S. government shutdown is delaying key economic data and complicating Fed signaling, while global stocks from Asia to Europe traded lower as investors took profits.